Analysts have named the reason for the sharp rise in the rate of bitcoin

On the night of April 3/4, the Bitcoin rate on many trading floors reached a level of $ 5,935, but by morning it rolled back to $ 5,034, where it is being traded at the moment. Most analysts believe that the main driver of the growth rate of the BTC on April 1 is the old so-called the mechanism of fear of missed opportunities (FOMO), as a result of which investors began to appear, buying cryptocurrencies “just in case”.

The turnover of the market in the dynamics from April 3 to April 4, according to CoinMarketCap, reached a new historical record of $ 86.62 billion in 24 hours. This is approximately 400% higher than at the beginning of 2018, although the total capitalization of the cryptocurrency market is now four times less. Meanwhile, it is worth noting that, according to Bitwise Asset Management, the actual trading volume of Bitcoin can be only 5% of the figures that centralized trading platforms provide in CoinMarketCap.

In any case, a survey conducted by eToro's chief analyst for macroeconomics, Mati Greenspan, showed that:

48% of respondents feel FOMO.

15% found it difficult to answer

and 37% said they did not notice such a feeling.

At the same time, the analyst Tony Weiss’s forecast looks curious. On the one hand, he was wrong when he said on April 2 that he did not believe in Bitcoin growth well above $ 5,000 in the foreseeable future – Bitcoin could add another one thousand dollars in the next 48 hours after its forecast. On the other hand, the fact that on April 4, Bitcoin is again “pressed” to $ 5,000, suggests that, if not “seizing the moment”, then Weiss is generally right.

According to the analyst himself, he decided to sell Bitcoin at a price of around $ 5,000. He also admitted that he did not think that this week Bitcoin would overcome the resistance line of $ 4,200, but if that happened, a good situation arose for taking profits. Tony Weiss summarizes:

“Bitcoin in its market behavior, however, is no different from other investment assets.”

Cryptocurrency enthusiast since 2015, a lover of blockchain technology and everything around her. He joined the Crypto Economy team in 2018 as a content editor specializing in SEO. He is also responsible for the Social Networks of the platform.

Ad

About US

The Cryptocurrency Post is a digital media created to inform people interested in blockchain, cryptocurrency, new companies and alliances formed in this sector, as well as to help new entrants into this exciting world. The future is now.